Pleasure and pain: Silverfleet, Caird and IPOs

A GOOD MONTH FOR…

GPs that need a little guidance on ESG. Development finance institution CDC Group launched an ESG toolkit for fund managers at Private Equity International’s Responsible Investment Forum. The toolkit — a free, online tool aimed at the GP community, but available to investors and consultants — includes individual sector profiles, such as manufacturing, healthcare, retail, and agriculture and aquaculture, and provides guidance on issues such as how to address ESG matters throughout the investment cycle, how to assess and manage governance and business integrity matters, and what to expect when working with CDC.

European mid-market buyout specialist Silverfleet Capital, which smashed through its initial target of €700 million for Silverfleet Capital Partners II to hold a final close on €850 million. The fund, which began marketing in the second half of last year, received commitments from 25 institutional investors, 55 percent of which were returning. Silverfleet made a GP commitment of about 2 percent. Rather than taking a well-earned breather, the firm cracked on with striking its first deal from the vehicle, agreeing to acquire a majority stake in Danish womenswear brand Masai Clothing Company from its founders, brother and sister Hans and Nina Rye.

KKR India chief exec Sanjay Nayar, who was chosen to lead the Indian Private Equity & Venture Capital Association. Nayar, who oversees KKR’s India operations from Mumbai and is a member of the firm’s Asia portfolio management committee, will be joined by Gopal Srinivasan, head of India private equity firm TVS Capital, who has been appointed vice chairman. But Nayar shouldn’t get too comfortable in his new seat. The pair will hold their posts through 31 March 2016, at which time Srinivasan will reportedly take over as chairman.

A BAD MONTH FOR…

Private equity-backed initial public offerings, which declined during the first quarter of 2015, according to EY data. Globally, the amount raised fell 17 percent to $14.3 billion from the same period a year ago, with 37 companies listed compared to 40 in Q1 2014 and 48 in the previous quarter. The picture in the Americas was particularly dire, with only eight IPOs in Q1, the lowest quarterly number since 2009. Europe fared decidedly better, with companies raising $11.2 billion for 21 offerings, up almost 50 percent from the first quarter last year and more than five times the amount raised in the previous quarter.

London-based mid-market firm Caird Capital, which lost one of its founding partners to Caledonia Investments. Andy Powell, former head of HBOS Integrated Finance, jumped ship to join Caledonia’s unquoted investments team as a director. Caledonia recently released its results for the year ended 31 March 2015, which showed that over the course of the year the unquoted pool returned 19.2 percent, including income, with “strong cash flow generation” from across the portfolio delivering £23.1 million (€32 million; $35 million) of income. The core portfolio delivered 12.2 percent EBITDA growth during the year.

Fund managers that will soon find themselves at the receiving end of the CalPERS cull. The California state pension fund has decided to slash the number of external fund managers it works with from 212 to 100, with its private equity GP relationships reduced from 98 to just 30. Chief investment officer Ted Eliopoulos told journalists that the pension fund’s benefit payments are now greater than the sum of its contributions and investment income, making it “crucial and critical” to cut back on fees and reduce complexity.